The United States imposed a 35 percent tariff on Chinese tire imports in the hopes of sustaining U.S. jobs in tire manufacturing. This addition of tariffs is an example of: Multiple Choice A. enhancing domestic imperialism. B. increasing protectionism. C. increasing ethnocentrism. D. slowing countertrade. E. imposing the rule of eminent domain.
Added by Ann W.
Step 1
This action is aimed at increasing protectionism, which refers to the use of trade barriers such as tariffs to protect domestic industries from foreign competition. Show more…
Show all steps
Your feedback will help us improve your experience
Daniel Cisneros and 57 other Microeconomics educators are ready to help you.
Ask a new question
Labs
Want to see this concept in action?
Explore this concept interactively to see how it behaves as you change inputs.
Key Concepts
Recommended Videos
(Related to the Making the Connection on page 232 ) For several years, the United States imposed a tariff on tire imports. According to an analysis by economists Gary Clyde Hufbauer and Sean Lowry of the Petersen lnstitute, of the additional $\$ 1.1$ billion consumers spent on tires as a result of the tariff on Chinese tires, the workers whose jobs were saved in the U.S. tire industry received only about $\$ 48$ million in wages. Wouldn't it have been cheaper for the federal government to have raised taxes on U.S. consumers and given the money to tire workers rather than to have imposed a tariff? If so, why didn't the federal government adopt this alternative policy?
Comparative Advantage and the Gains from International Trade
Government Policies That Restrict International Trade
7) Consider the example of a tariff placed on the import of Chinese manufactured steel into the US. A) Discuss how the actual price of steel purchased by a car manufacturer in Detroit Michigan will be affected after the tariff is imposed? B) Where does the tariff tax collected end up? C) What would likely happen to the domestic production of steel after the tariff is imposed? D) What would likely happen to the quantity demanded for steel in the US?
Akash M.
Which was not one of the reasons of adopting nationalism for Mercantilist? Select one: a. To dominate trade routes. b. To colonize more colonies. c. To encourage trade surplus. d. To promote equal rights between commoners and land owners.
Rashmi S.
Recommended Textbooks
Principles of Economics
Principles of Microeconomics for AP® Courses
Economics
Transcript
18,000,000+
Students on Numerade
Trusted by students at 8,000+ universities
Watch the video solution with this free unlock.
EMAIL
PASSWORD